Whole Foods 'Meaningfully Improved' Profitability Last Year, Says Amazon CEO

By Steve Wynne-Jones
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Whole Foods 'Meaningfully Improved' Profitability Last Year, Says Amazon CEO

Amazon's Whole Foods Market business "meaningfully improved" its profitability last year, Amazon CEO Andy Jassy has said, as the business reported its second-quarter results.

While Amazon doesn't publish specific breakout figures for its Whole Foods business, it did state in the results that its physical store estate reported sales of $5.024 billion (€4.59 billion) in the second quarter.

This is up 7% on the $4.721 billion (€4.31 billion) it reported for the division in the second quarter of last year.

'Growing At A Healthy Clip'

In a conference call to discuss the group's results, Jassy said, "Whole Foods continues to lead the organic grocery space, is growing at a healthy clip, and has meaningfully improved its profitability in the last year.

"We're pleased with what we're seeing with Whole Foods."


A report earlier this week, published by Bloomberg, said that Amazon was planning its largest overhaul of the Whole Foods business to date, planning to revamp stores, introduce automated warehouses, and offer delivery to customers that aren't subscribed to Amazon's Prime service.

Amazon Fresh

In terms of the group's other core physical retail arm, Amazon Fresh, Jassy added that the group was working on "new formats" within that business, having "significantly improved" a number of elements of the business.

Amazon Fresh stores in Chicago and Southern California are the first to experience the new format, he added, which will feature an enhanced selection and more private-label products.

However, he added that the group does not plan to expand the number of Fresh outlets it operates in North America in a significant way "until we believe we have something that is resonant with customers".

Overall net sales in the quarter increased 11% to $134.4 billion (€122.75 billion), compared with $121.2 billion (€110.7 billion) in the second quarter of 2022.

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